Original-Research: DEMIRE AG (von NuWays AG): BUY

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Original-Research: DEMIRE AG - from NuWays AG

08.05.2026 / 09:00 CET/CEST

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Classification of NuWays AG to DEMIRE AG

Company Name: DEMIRE AG

ISIN: DE000A0XFSF0

Reason for the research: Update

Recommendation: BUY

Target price: EUR 0.8

Target price on sight of: 12 months

Last rating change:

Analyst: Philipp Sennewald

Q1 in line with est. but vacancy increases further

Yesterday, DEMIRE published its Q1'26 results, coming in broadly in linw on

both top-line and FFO. While the headline numbers held no surprises, vacancy

remains a key operational concern.

Q1 rental income declined 17.3% yoy to EUR 11.6m (eNuW: EUR 11.4m), reflecting

the smaller asset base following multiple disposals throughout FY25, as well

as the impact of higher vacancy, which was only partly offset by rent

indexation. Annualised contractual rents fell to EUR 45.7m (FY25: EUR 51.3m),

driven by two asset disposals in Q1 as well as two assets becoming fully

vacant.

As a result, the EPRA vacancy rate rose sharply to 21.0% (FY25: 16.4%).

Re-letting in the current soft German office market remains challenging, and

the letting volume of only ~2,700 sqm in Q1 (vs. 25,500 sqm a year ago)

underlines the difficult demand environment, although the Q1'25 figure was

inflated by two large one-off prolongations. Management expects larger

lettings to materialise over the remainder of the year and appeared

confidentappeared confident that it could quickly recover at least part of

the rental income of the two fully vacant properties. Here, execution

remains the most decisive factor. Positively, WALT improved 0.5 years to 5.2

years, mainly reflecting the conversion of a single-tenant master lease into

individual rental contracts at one of DEMIRE's larger assets.

FFO I came in at EUR 0.3m (eNuW: EUR 0.7m; Q1'25: EUR 2.1m), which was almost

entirely driven by the decline in rental income, only partly offset by a

slightly improved NOI margin (+2pp yoy). Mind you, this figure reflects the

FFO before shareholder loan interest (EUR 93.5m volume & 22% interest), which

the company capitalises, and is therefore P&L-relevant, despite not being

cash-effective.

The FY26 guidance was confirmed with rental income of EUR 41.5-43.5m and FFO I

of EUR -1.0-1.0m. In our view, this is, as in previous years, too

conservative. Even reflecting a certain amount of disposals, we expect

rental income of EUR 44.2m, based on (i) the Q1 top-line, (ii) the contractual

rent of EUR 45.7m as well as (iii) improving vacancy levels during the

remainder of FY26e. On FFO, we expect EUR 2.9m, supported by stable G&A and

the aforementioned effects. Despite the muted near-term operational

backdrop, the stock continues to trade at a significant discount to NAV and

remains an attractive opportunity, particularly for special situation

investors.

Reiterate BUY, PT EUR 0.80.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=50d7c7fe8684b0e73ff98fd3fdb8b654

For additional information visit our website:

https://www.nuways-ag.com/research-feed

Contact for questions:

NuWays AG - Equity Research

Web: www.nuways-ag.com

Email: research@nuways-ag.com

LinkedIn: https://www.linkedin.com/company/nuwaysag

Adresse: Mittelweg 16-17, 20148 Hamburg, Germany

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Diese Meldung ist keine Anlageberatung oder Aufforderung zum Abschluss

bestimmter Börsengeschäfte.

Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben

analysierten Unternehmen befindet sich in der vollständigen Analyse.

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2323678 08.05.2026 CET/CEST

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